ECONOMY WEEKLY: WEEK OF MARCH 22, 2010

“The average income tax refund is up nearly 10% from a year ago, reflecting tax credits included in last year's economic stimulus package, according to IRS Commissioner Douglas Shulman…. The Recovery Act provided a tax credit of $400 for workers, or $800 for married couples. Most workers who have taxes withheld from their paychecks received the credit through an adjustment in their withholding. But those who didn't receive the full credit through withholding will receive the balance in their refunds.”

– USA Today, 3/23/2010

Economy Highlights:

• The Commerce Department reported that economic recovery continues with a rise in business orders for equipment: “Companies boosted their orders for capital goods such as machinery and computers in February, in an encouraging sign that U.S. business is confident enough to support the economic recovery…. Rising business investment can often presage an increase in hiring—something many economists expect to see when the Labor Department reports on March employment early next month.” [Wall Street Journal, 3/25/2010]

Recovery Highlights:

• Vice President Biden, Treasury Secretary Geithner and IRS Commissioner Doug Shulman announced that average tax refunds are up nearly 10% this year, due in large part to the tax benefits available under the Recovery Act. “The average tax refund has reached $3,036 this year, a $266 increase from a year ago.” [White House, 3/22/2010]

o To ensure that taxpayers are aware for which Recovery Act tax breaks they are eligible, the Obama Administration launched a new interactive Tax Savings Tool to “alert taxpayers to the more than a dozen tax benefits available to them under the Recovery Act.” Click here to access the Tax Savings Tool.

• The Department of Housing and Urban Development (HUD) announced that Recovery Act funds for public housing have already created or saved 9,000 jobs. “Over 3,100 public housing authorities across the U.S. successfully met a critical funding deadline outlined in the American Reinvestment and Recovery Act of 2009…. To date, as a result of this critical Recovery Act funding, public housing authorities reported creating or retaining nearly 9,000 jobs and developing or rehabilitating 150,000 public housing units in hard-hit neighborhoods throughout the country.” [HUD, 3/24/2010]